Does this recommend an allocation?

No. It calculates a scenario from user-entered assumptions and does not recommend securities or asset weights.

Why does correlation matter?

Correlation affects how asset risks combine. This simple calculator assumes zero correlation, so advanced users should treat volatility as a rough estimate.

What is the Sharpe ratio?

Sharpe ratio compares expected excess return above a risk-free rate with portfolio volatility. It is one risk-adjusted return metric, not a complete investment decision.

Asset Allocation Calculator

Estimate portfolio allocation, weighted expected return, simplified volatility, projected value, and Sharpe ratio from stocks, bonds, cash, or custom assets.

Portfolio value ($)

Time horizon (years)

Risk-free rate (%)

Asset allocationTotal allocation: 100%

Asset

Weight %

Return %

Volatility %

What this asset allocation calculator estimates

English asset-allocation intent focuses on the mix of assets in a portfolio and how that mix affects expected return and risk. This calculator lets users enter weights, return assumptions, volatility assumptions, and a risk-free rate.

Portfolio value and time horizon.
Asset weights for stocks, bonds, cash, or custom categories.
Expected annual return and volatility for each asset.
Weighted expected return, simplified volatility, projected value, and Sharpe ratio.

Not investment advice

Expected returns and volatility are user assumptions. Real portfolios involve correlation, drawdowns, fees, taxes, inflation, rebalancing, and investment-specific risks.

Portfolio allocation formulas

R_{p} = \sum w_{i} R_{i}

Expected portfolio return is the weight-adjusted sum of asset return assumptions.

σ_{p} \approx \sum (w_{i} σ_{i})^{2}

The tool uses a simplified zero-correlation risk estimate for an accessible planning view.

S ha r p e = (R_{p} - R_{f}) / σ_{p}

Sharpe ratio compares expected excess return with estimated volatility.

How to use the allocation result

Input	How to think about it
Time horizon	Longer horizons may tolerate more volatility, but they do not remove market risk.
Risk tolerance	Higher-return assumptions usually come with larger drawdown risk.
Diversification	Asset classes and holdings can behave differently across market conditions.
Rebalancing	Portfolio weights can drift as assets grow at different rates.

Frequently Asked Questions

Sources and References

Calculations are based on the listed reference sources. Links open in a new tab.

Updated: June 2, 2026

Related Tools

Compound Interest Calculator

Project savings or investment growth with an initial investment, regular contributions, estimated return, time horizon, and compounding frequency.

Open

ROI Calculator

Calculate simple return on investment from investment cost and ending value, with net return and ROI percentage.

Open

Inflation Calculator

Estimate how inflation changes purchasing power over time with a custom annual rate, and compare the scenario with CPI-based references.

Open

Savings Calculator

Estimate how a savings balance can grow with APY, monthly deposits, interest posting frequency, and an optional tax-rate scenario.

Open